Polish government set to grant LLP status to foreign law firms

The Polish government is on the verge of passing legislation that allows foreign law firms to become limited liability partnerships (LLPs).

Until recently, foreign law firms have operated in Poland as limited liability companies. But under new laws, which are in the final stage of being passed, LLP status will now be possible.

The deadline for submitting applications to become an LLP is 14 October. The law is expected to come into force next January. There is also the option for local firms to become a limited or general partnership.

A UK lawyer in the region says that the main benefit to foreign firms will be a tax saving, since currently foreign practices are taxed in both Poland and the UK. Now firms will be taxed only in Poland.

Yarek Jerszynski, a corporate and M&A lawyer at Dewey Ballantine in Warsaw, says: "At first it will be difficult for courts and lawyers to undergo the changes - the change in the law is huge."

One source says: "It's a hassle we have to go through. As we have a settled situation now, I don't see why we can't keep it in place; but on the other hand, there are tax benefits."

The legal change has been ongoing for three years.